How Useful is Level II?

[Sparrow]

dctrader is offline
Last Activity: 02-15-2007 06:00 PM
try PM or email(if possible).

[torero]

I wouldn't base purchases on what somebody is advertising, it could be misleading. Same with L2, your guess is as good as anyone else' in MM's intentions in the market. T&S is better a gauge. In thin markets, don't even bother with L2. You're playing their game and their rules.

[aiki14]

Nasdaq Total View is a great feature, better by far than level 2

[walterw]

	Quote:	aiki14
	Nasdaq Total View is a great feature, better by far than level 2

Aiki, can you expand this topic... sounds interesting... cheers The Chimp.

[aiki14]

I get it through Thompson Financial but there are a lot of available platforms, It gives you a ton more data than standard level 2


Here's the link to the Nasdaq site
https://www.nasdaqtrader.com/

And the fact sheet for non professional traders
https://www.nasdaqtrader.com/trader/...wFactSheet.pdf

[Reaver]

I don't understand how with the advent of Iceberg and Hidden orders that level II could be viable....it's just not accurate information you are dealing with.

[aiki14]

	Quote:	Reaver
	I don't understand how with the advent of Iceberg and Hidden orders that level II could be viable....it's just not accurate information you are dealing with.

There's been fourth market trading for years as well. Level 2 at least will give you a hint at where the dumb money is going, and total view gives total anonymous interest. I have found it quite useful.

[nasdaq.nyse.day.trader]

I couldn't trade without it.
I use a combo of charts, then level 2 and T&S. There are several fakes the MMs play and that means that maybe 90% of the time they are of no real use.
However, 10% of the time level 2 and T&S tell you what is going to happen before a chart tells you anything. Sorting that 10% out is what makes level 2 and T&S priceless. You require the skills to read them or make intelligent guesses as to what is going on. I guess the nearest thing is reading the road ahead and anticipating when you're driving.